Shareholder Reports Rule 30e-3
March 20, 2023
On June 4, 2018, the SEC adopted a final rule allowing certain funds the option (not required) to satisfy the obligation for delivering shareholder reports via “notice and access.” A fund will have the option to post shareholder reports on the fund website and send investors a paper notice communicating that the report is available online (in lieu of mailing the full report).
If electing to utilize the “notice and access” option a fund must adhere to the following:
- Report accessibility. A shareholder report must be made available, free of charge and publicly accessible at a specified website.
- Notice. A notice must be mailed at each reporting period notifying shareholders of the availability of the report online.
- Quarterly holdings accessibility. Quarterly holdings for the last fiscal year must also be made available on the fund website.
- Fulfillment requirement. Upon request, a fund must send a printed copy of any regulatory document, including shareholder reports and quarterly holdings, within three business days of initial request (at no cost).
- Option to elect for paper delivery. A shareholder will reserve the right to opt-in to receive all shareholder reports in paper.
Additional details regarding the notice
- Must be sent to investors for every annual and semi-annual report, within 70 calendar days of the end of the reporting period
- A consolidated notice may be used for multiple funds
- May accompany account statements or other shareholder materials
- Required information:
- Prominent legend stating report availability online and in paper by request
- Statement that the report contains important information about the fund, including portfolio holdings and financial statements
- Website URL
- Toll-free number to contact the fund or financial intermediary
- Instructions for requesting a paper or email copy and indication that a paper or email copy will not be received unless requested
- Explanation that a shareholder can elect to receive paper copies of reports in the future and instructions for doing so
- Optional content may be included such as fund sponsor, listing of other information included in report, QR code or additional options for accessing website, additional shareholder information.
Compliance dates
All Fund Groups: The earliest a fund may rely on the rule is January 1, 2021.
NOTE: Existing funds must inform investors of intent to rely on rule 30e-3 through prominent disclosure on the cover page of their regulatory documents for a period of two years prior changing delivery format.
- New funds starting after January 1, 2019, may rely on rule 30e-3 on January 1, 2021 if notice is provided to shareholders of intent to do so in their first public offering.
- New funds starting after January 1, 2021, need not provide advance notice.
What this means for funds utilizing “Notice and Access”
- Reduction in print and mailing costs
- Potential increase in print-on-demand fulfillment
- Increased importance of online presence and format of reports
FilePoint Solution
FilePoint is prepared to assist with the adoption of Rule 30e-3 in several ways.
Formatting, printing and mailing of notices
FilePoint can work with your team to prepare the most cost-effective layout and method for printing and mailing the shareholder notice.
Print-on-demand fulfillment
FilePoint has a fulfillment platform that can print-on-demand, inventory, mail and track the delivery of all requested documents, keeping a complete record for compliance purposes.
LiveReports™
FilePoint has an interactive format for displaying shareholder reports on a website, modernizing the shareholder experience by utilizing the myriad capabilities of a web browser.
With easy navigation, searchable/sortable/exportable content, interactive charts/graphs, responsive (mobile-friendly) design and endless customization, a FilePoint LiveReport™ does not have constraints of a printable PDF, enabling it to seamlessly integrate shareholder report content into any existing website.
